What is a works council?
A works council is an employee representative body involved in information and consultation processes between an employer and the workforce. Its role is to enable employees to receive relevant information about the employer’s activity and to express views on matters that may affect employment, work organisation or significant business decisions. A works council is not the same as a trade union. Trade unions primarily represent and defend employees’ collective and individual rights, while a works council usually operates as a consultation body focused on access to information and dialogue with the employer.
The legal meaning of a works council depends on the jurisdiction. In Poland, the closest equivalent is the employee council established under the Act of 7 April 2006 on informing employees and consulting with them. The Act applies, as a rule, to employers conducting business activity and employing at least 50 employees, which follows from Article 1 of that Act. At the EU level, employee information and consultation are also addressed by Directive 2002/14/EC, which sets a general framework for informing and consulting employees, while Directive 2009/38/EC regulates European Works Councils.
A European Works Council is relevant for larger cross-border groups. Under Article 2 of Directive 2009/38/EC, it applies to Community-scale undertakings or groups employing at least 1,000 employees within the Member States and at least 150 employees in each of at least two Member States. In practice, this means that a works council may function either as a national employee representation body or as a transnational body within a multinational group.
What does a works council do?
A works council supports structured communication between the employer and employees. Its main function is to receive information and participate in consultations before certain decisions are implemented. This may include issues relating to the employer’s economic situation, anticipated changes in employment, restructuring, transfers of undertakings, changes in work organisation, collective redundancies, or other measures that may materially affect employees.
In the Polish model, the employer is generally required to provide the employee council with information concerning the employer’s activities and economic situation, the state and expected changes in employment, and actions that may cause significant changes in work organisation or the basis of employment. The council may present its position, ask questions and participate in consultations, although it usually does not have a direct veto over management decisions.
The practical importance of a works council is particularly visible during business transformation. In mergers, acquisitions, reorganisations, outsourcing projects, plant closures or reductions in workforce, employee information and consultation obligations may become a key element of legal compliance. Failure to identify these obligations early may delay a transaction, create labour disputes or expose the employer to claims and administrative or reputational risks.
A works council may also play a role in ongoing employment relations. It can help clarify planned changes to internal policies, working time arrangements, workplace rules, health and safety matters, remote work models or technological changes affecting employees. The exact scope of consultation depends on the applicable law, internal arrangements and the factual circumstances of the employer.
When is it worth seeking legal advice on a works council?
Legal advice may be required both by employers and by employee representatives. Employers should verify whether they are subject to works council obligations, how to organise elections or cooperation with the council, what information must be provided, and how to conduct consultations without disclosing protected business secrets beyond what is legally required.
For companies, works council issues often arise during restructuring, collective redundancies, business transfers, changes in corporate structure, acquisitions, or the implementation of group-wide policies. Legal assessment is also important when a Polish company is part of an international group and may fall within European Works Council rules. In such cases, the employer should determine whether national and EU consultation obligations overlap and how they should be coordinated.
Employee representatives may need support in understanding their rights, the scope of information they may request, confidentiality obligations, consultation procedures and the legal consequences of the employer’s planned actions. Works council members are often expected to assess complex business or employment information, so legal guidance may help them perform their role effectively and within the limits of the law.
Early consultation with a lawyer can help avoid procedural mistakes, disputes with employee representatives, delays in corporate decisions, liability connected with non-compliance, and financial losses resulting from incorrectly planned restructuring or employment changes. This is particularly important where the employer must balance employee information rights with confidentiality, trade secrets and transaction timelines.
Legal support in matters involving works councils
Legal support in the area of works councils may include in particular:
- assessing whether an employer is required to organise elections for or cooperate with a works council,
- advising on employee council elections and internal procedures,
- preparing information and consultation processes,
- supporting employers during restructuring, collective redundancies and business transfers,
- advising on European Works Council obligations in international groups,
- drafting internal documents, notices, consultation materials and confidentiality arrangements,
- representing employers or employee representatives in disputes concerning information and consultation rights,
- coordinating works council obligations with employment law, corporate law and transaction documentation.
Need legal support regarding a works council? Contact us.
See also
- Employment Contract
- Dismissal
- Business restructuring
- Company merger